Why in the News?
India responded to investigations by the United States Trade Representative under Section 301 on forced labour and excess capacity.
Key Points
- Section 301: US law to investigate unfair trade practices and impose tariffs.
- India on Forced Labour: India has ratified International Labour Organization conventions:
- Forced Labour Convention, 1930
- Abolition of Forced Labour Convention, 1957
- India on Excess Capacity: Economy is largely domestic demand driven
- Export to GDP ratio about 12 percent
- Trade Surplus Argument: Trade surplus is a normal outcome of global trade
- Based on comparative advantage
- US Concerns: Overcapacity affecting US jobs and industries
- India’s Counter
- India accounts for only about 3.1 percent of US imports
- Limited role in US trade deficit
| [2018] International Labour Organization’s Conventions 138 and 182 are related to: (a) Child labour (b) Adaptation of agriculture practices to global climate change (c) Regulation of food prices and food security (d) Gender parity at the workplace |
